Private equity fund closings fell sharply in the first three months of 2024—down 37 percent from the same period last year—according to a new report by Preqin. In total, there were just 150 completed fundraisings in the first quarter.
Though the number of newly raised funds has fallen, overall capital raised was comparatively stable, declining 6 percent year-over-year $166.8 billion. These stats seem to support much of the anecdotal evidence this year from fund managers and allocators who have seen a strong market preference for larger, more established firms at the expense of smaller upstarts without a lengthy track record.
Of the closed funds, 60 percent, or 90, were North American. Europe raised 45, while the Asia Pacific region raised 11.
Heading into the second half, Preqin analysts see room to run for APAC-based firms, noting that the region’s outlook “remains resilient for private equity as China buyout transactions were up in the fourth quarter of 2023, private equity deals surged at year-end, and Chinese exits are also on the rise.”
Exit activity in the first quarter was also down from the fourth quarter of 2023, with 358 exits compared to 452—on an aggregate basis, transaction value of $54.2 billion was down 57 percent from the prior quarter.